Why Shares of Ally Financial Jumped 10% in May

Shares of large digital consumer bank Ally Financial (NYSE: ALLY) rose more than 10% in May, according to data provided by S&P Global Market Intelligence. The main reason for the move looks to be the revelation that legendary investor Warren Buffett and his company Berkshire Hathaway have taken a small stake in the company.

In Berkshire's 13F filing for the first quarter of the year, which shows what stocks the company bought during that three-month time frame, Berkshire disclosed that it had purchased roughly 8.97 million shares of Ally valued at close to $390 million. That means Buffett and Berkshire purchased shares at an average cost of roughly $43.82.

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Source Fool.com